By: Staff Writer

July 18, Colombo (LNW): State Minister of Finance Shehan Semasinghe is optimistic about surpassing the US $5 billion mark in foreign reserves by the end of the year, owing to robust growth in the tourism sector.

He made this prediction following the tourism ministry revelation of the latest tourist arrival status recently.

Accordingly Sri Lanka has registered a significant increase in tourist arrivals, with over 85,000 visitors welcomed in the first 14 days of July, bringing the total number close to 1.1 million so far in 2024.

Speaking at the National Development Pride Conference of the Development Lottery Board, he highlighted the significant contribution of tourism to the economy. By 25 April, tourist arrivals in Sri Lanka had exceeded 757,000, bolstering foreign reserves and setting the stage to surpass $5 billion by year-end.

Semasinghe credited this positive trend to a favorable environment for economic growth and stability. Sri Lanka Tourism has set ambitious goals for 2024, aiming to attract 2.3 million tourists and generate over $4 billion in revenue.

 In the first 28 days of April alone, the country welcomed 132,152 visitors, bringing the year-to-date total to 767,936. The Sri Lanka Tourism Development Authority (SLTDA) identified India, Russia, and the UK as the top source markets for the year.

Building on this momentum, Semasinghe proposed reintroducing the Colombo Airport Super Draw lottery, a scheme offering participants a chance to win significant prizes. He believes such initiatives can further bolster economic recovery and stimulate consumer spending.

The State Minister expressed optimism about economic recovery, noting that previous doubts about Sri Lanka’s ability to overcome its economic crisis have dissipated.

 He emphasized the collective effort of all stakeholders in implementing internationally accepted reforms and achieving national development goals. Semasinghe highlighted the importance of mutual respect among stakeholders to drive the country forward.

He also predicted continued economic strengthening over the next three months, anticipating tangible benefits for the population as the country progresses towards sustained economic stability.

Sri Lanka has seen a substantial increase in tourist arrivals, with over 85,000 visitors in the first 14 days of July alone, pushing the total close to 1.1 million for 2024.

This surge is largely due to the Dawoodi Bohra International Convention held in Colombo, which concluded recently.

The first two weeks of July saw an average of 6,102 daily arrivals, with India being the top source market, contributing 23,498 tourists, followed by the UK with 7,703 and China with 5,317.

Other significant markets included Germany, Australia, France, the Netherlands, Switzerland, the US, and Canada. The SLTDA expects total arrivals for July to reach 220,950.

For the year, India has remained the leading source of tourists, with 207,966 arrivals, followed by Russia with 116,019 and the UK with 97,055. Sri Lanka Tourism is on track to achieve its 2024 targets of attracting over 2.3 million tourists and generating more than $4 billion in foreign exchange earnings, signaling a strong recovery and growth in the tourism sector.

By: Staff Writer

July 18, Colombo (LNW): Sri Lanka is on the brink of emerging from a ‘restrictive default’ status, a label that has deterred potential investors, several eminent economic experts claimed.

While Sri Lanka is poised to exit its restrictive default status, the journey ahead requires maintaining macroeconomic stability, implementing structural reforms, securing investments, and achieving significant fiscal health improvements to ensure sustainable economic growth and stability

The nation has undertaken significant and difficult measures to restructure its debt and is now awaiting the final nod from the International Monetary Fund (IMF) to validate the negotiated terms with creditors.

This approval is crucial as it will indicate a change in the country’s economic status, an outcome eagerly awaited by the nation’s stakeholders.because the authorities have failed to fulfill the rheir commitments properly and change of governments they said adding that this time no turning back for the island nation.

Maninda Wickramasinghe, MD of Fitch Ratings Lanka, noted the substantial recovery progress Sri Lanka has made, a sentiment shared by international agencies.

He pointed out that once the restructuring of bonds and bilateral agreements is finalized, there should be no reason for rating agencies to keep the country at restricted default.

Wickramasinghe emphasized that his views were personal and did not represent Fitch Ratings Lanka’s official stance. He also mentioned that Sri Lanka should initiate a review process, which should be brief.

Wickramasinghe praised Sri Lanka’s resilience in restructuring its debt but stressed the importance of learning from past mistakes to avoid future economic pitfalls. Addressing the timeline for status change, he highlighted the complexity, noting this was the first time Sri Lanka approached the IMF while in default.

 He remarked on the frequency of IMF engagements, indicating systemic issues that need addressing to prevent recurrence.

World Bank Lead Economist Gregory Smith shared similar views, stating that while exiting restrictive default is feasible, the real challenge will be achieving a rating upgrade afterward.

Smith pointed out the monumental task of reaching a B- rating due to high debt service to revenue ratios. He emphasized the need for Sri Lanka to regain market access by 2027 to repay the IMF and highlighted the necessity for substantial new investments.

Smith also underscored the difficulty countries face in returning to their pre-crisis status, noting the extensive work required and the importance of avoiding policy mistakes to foster economic growth.

Former Central Bank Governor Dr. Indrajith Coomaraswamy echoed these sentiments, emphasizing the need for macroeconomic stability, structural reforms, and leveraging opportunities from neighboring India to achieve a growth rate above 3 percent.

Coomaraswamy stressed that achieving a primary surplus target of 2.3 percent by 2025 is crucial to avoiding another debt restructuring.

He advocated for improving tax revenue through better administration and eliminating tax concessions, aiming to raise the tax revenue to GDP ratio beyond 15 percent. This financial stability is essential to support the country’s growth initiatives and economic strategy.

By: Staff Writer

July 18, Colombo (LNW): The Hirdaramani Group, a prominent name in apparel manufacturing and sustainability, recently declared opened  a significant Rs. 10 billion investment in a new high-tech textile mill named ‘Mihila Tex’ in Pannala.

This cutting-edge facility is poised to transform the apparel industry and reinforce Sri Lanka’s status as a sustainable manufacturing hub.

Partnering with Hengda Textiles, a leading global textile manufacturer known for its innovation and sustainability, the Hirdaramani Group aims to enhance its apparel business in Sri Lanka.

 This collaboration is intended to strengthen the local value chain, thereby reducing the need for importing raw materials and providing optimized apparel solutions to global customers.

Vinod Hirdaramani, Chairman of the Hirdaramani Group, emphasized the strategic importance of this investment in their long-term growth plan.

He highlighted the benefits the Sri Lankan apparel industry would gain from Hengda Textiles’ expertise and best practices. Additionally, this initiative will create over 800 jobs and further positively impact the Pannala community.

Zheng Jianfan, Chairman of Hengda Textiles, expressed enthusiasm about the partnership, noting the potential for sustainable, faster, and advanced apparel solutions to propel the industry forward.

This collaboration is expected to leverage the strengths of both companies and the broader apparel sector, fostering long-term growth.

‘Mihila Tex’ is set to embody the Hirdaramani Group’s Future First Sustainability Agenda. The new mill’s green manufacturing practices will align with the Group’s goals of responsible operations, environmental protection, and community impact. The facility is projected to be fully operational by 2025.

The Rs. 10 billion funding will develop a state-of-the-art textile mill featuring advanced sustainable technologies to minimize energy consumption, reduce waste, and optimize resource management.

The mill will implement advanced water recycling and purification systems to minimize water usage, recognizing the critical importance of responsible water management in textile production.

The facility will utilize renewable energy sources, supporting both companies’ commitments to reducing carbon emissions and aligning with Sri Lanka’s renewable energy goals.

Hirdaramani Group and Hengda Textiles plan to obtain internationally recognized sustainability certifications for the mill, underscoring their dedication to environmentally responsible manufacturing.

 The establishment of the new mill will generate numerous employment opportunities, benefiting the local economy and supporting the livelihoods of many Sri Lankans.

This venture marks a significant step in the Hirdaramani Group’s strategy to boost Sri Lanka’s apparel industry while adhering to stringent sustainability standards. By leveraging advanced technology and best practices, ‘Mihila Tex’ aims to set a new benchmark in sustainable apparel manufacturing.

By: Staff Writer

July 18, Colombo (LNW): Adani Power’s 234 MW renewable energy project in Pooneryn has encountered a legal challenge. The Court of Appeal has issued notices to various ministries and officials following a case filed by H.J.A.W. International Ltd. and Dutch Bay Holdings Ltd.

These Petitioners had planned a 50 MW wind power plant on the same site before Adani’s proposal. They challenge the State’s acquisition of their privately owned lands intended for their project, alleging misuse of the Land Acquisition Act and appropriation of their proprietary information. The Court has scheduled a hearing for 11 September 2024.

The Petitioners seek to have the acquisition process overturned if the Court rules in their favor. Legal representation for the Petitioners includes PC Navin Marapana, Kaushalya Molligoda, and Ruwantha Cooray, instructed by Sarravanan Neelakandan Law Associates

The acquisition was allegedly for the purpose of facilitating the Adani Group’s proposed wind power project in the area, leading to notices being issued to the Respondents.

The Minister of Lands, the relevant Divisional Secretary, the Secretaries of the Ministry of Power and Energy, and the State Ministry of Solar, Wind, and Hydro Power Generation Projects Development, and the Sri Lanka Sustainable Energy Authority were some of the Respondents named in the said application.

The Petitioners disclosed that they proposed to build, own, and operate a 50 MW wind power plant on the lands subject to acquisition, consequent to an invitation for proposals to generate and supply electrical energy from renewable energy resources on build, own, and operate basis by the State Ministry of Solar, Wind and Hydro Power Generation Projects Development.

 Further, the Petitioners noted that despite the relevant authorities acknowledging the receipt of their proposal along with a detailed feasibility study and the requisite financial payment, they had received no response about the outcome of the proposal.

The Petitioners also submitted to the Court that they were shocked to learn that their lands were subject to acquisition by the Ministry of Lands for apparently the same purpose for which they proposed to utilise their own lands and that the Petitioners’ intellectual property and the proprietary and confidential information contained in their project proposal had allegedly been appropriated by the relevant officials in the said process.

The Petitioners accordingly submitted that the draconian provisions of the Land Acquisition Act have been wrongfully invoked by the State to acquire land otherwise earmarked for the same public purpose purportedly disclosed in the Gazette published by the State.

July 18, Colombo (LNW): The official exchange rates released by the Central Bank of Sri Lanka (CBSL) are as follows: